Why CannaVEST (CANV) Stock Is Soaring This Afternoon

CannaVEST (CANV) stock is surging on Wednesday following news the company was granted a permit to grow and produce industrial hemp.

NEW YORK (TheStreet) --Shares of CannaVEST Corp. (CANV) are up 50.06% to $25.33 on Wednesday afternoon following news the Colorado Department of Agriculture issued a Commercial Industrial Hemp Registration to the company, which makes consumer products from the hemp plant, allowing it to grow and produce industrial hemp.

"Given the existence of profitable markets for a wide array of industrial and consumer products, commercial hemp industry in the U.S. could provide opportunities as an economically viable alternative crop for some U.S. growers," read a report from the Congressional Research Service.

Industrial hemp comes for certain types of cannabis plants that do not contain high levels of the psychoactive chemical tetrahydrocannabinol.